Apple reportedly planning App Store changes to increase revenue
Key points
- Apple is considering changes to the App Store aimed at increasing revenue and margins, according to Bloomberg's Mark Gurman
- New CEO John Ternus and services chief Eddy Cue are reportedly leading the effort to raise margins from the platform, which generates an estimated $30 billion annually
- Phil Schiller, 66, recently stepped away from running the App Store and is moving to other projects
- Schiller reportedly believes the planned changes will anger developers and governments and wanted no part in implementing them
- Apple was recently held in contempt of court for charging a 27 percent commission on outside purchases and ordered to stop; the Supreme Court has agreed to hear Apple's challenge
Bloomberg’s Mark Gurman reports that Apple is exploring ways to extract more revenue from the App Store, an effort led by newly appointed CEO John Ternus and services chief Eddy Cue. The specific changes under consideration remain unclear.
The report follows Phil Schiller’s recent departure from his App Store leadership role. Gurman cites internal sources saying Schiller, now 66, believes the planned monetization moves will provoke developers and regulators, and chose to step away rather than implement them. Schiller had previously opposed Apple’s 27 percent commission on external purchases, warning it would create an antagonistic relationship with developers.
Apple is currently appealing a contempt ruling over that commission structure, with the Supreme Court set to hear the case.
Sources
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